TAM S.A. (TAM) is engaged in providing scheduled air transportation in both the domestic market and the international market through the Company?s operating subsidiaries, TAM Linhas Aereas S.A. (TAM Linhas Aereas) and Transportes Aereos del Mercosur S.A. (TAM Mercosur). The Company offers flights throughout Brazil, serving the

number of destinations in Brazil of all Brazilian airlines, and operate scheduled passenger and cargo air transport routes to 42 cities, in addition to 37 other domestic destinations that it serves through regional alliances with other airlines. It also directly serves 18 international destinations and provides connections to other destinations through commercial agreements with United Airlines, Lufthansa, TAP, LAN and other airlines.During the year ended December 31, 2008, the Company carried approximately 25.6 million passengers on domestic flights and approximately 4.5 million passengers on international flights. In 2008, the Company joined the Star Alliance..